Tool Market Opportunity Expands with Major Brand Agreements
The Australian and New Zealand power and hand tool market is set for a shake-up as Stealth Group Holdings Ltd (ASX:SGI) secures exclusive distribution rights for CAT® Power Tools, Wesco Power Tools, and Harden Hand Tools. This move significantly strengthens Stealth’s exclusive brand strategy, positioning it as a dominant distributor in the region.
The agreements, spanning up to five years, mark a pivotal milestone in Stealth’s long-term growth strategy. If the company meets its FY28 targets, revenue from exclusive, private-label, and own-brand sales is projected to exceed $30 million, contributing to an ambitious $300 million total revenue goal.
CEO Highlights Strategic Growth Plan
“This is a game-changing milestone for Stealth,” said Stealth Group Holdings Managing Director and CEO Mike Arnold. “Securing exclusive distribution rights for these leading brands highlights our commitment to delivering high-quality products, greater value, and enhanced experiences to our customers.”
Arnold emphasised that the agreements will not only strengthen Stealth’s market position but also drive profitability. “Annual contract purchasing commitments will increase year-on-year as we penetrate more markets and channels,” he added. “By FY28, sales under these agreements are expected to exceed $30 million, with strong margin contributions above 40 per cent.”
Partnership with Global Tool Manufacturer Positec
The agreements with CAT® Power Tools and Wesco Power Tools come through Positec, a globally recognised tool manufacturer known for its innovation and high-quality products. Positec’s extensive portfolio includes leading brands such as Worx, Rockwell, and Kress, solidifying its reputation in the global power tool industry.
“Partnering with Positec allows us to bring premium power tools to the Australian and New Zealand markets,” Arnold said. “This collaboration strengthens our product offering and supports our long-term strategic growth.”
Expanding Market Reach and Sales Channels
Stealth plans to distribute these new brands through its extensive omni-channel network, including:
- Company-owned stores.
- Reseller trade and retail stores, including network licensee member stores.
- B2B sales contact centres and field representatives.
- Online sales platforms and reseller marketplaces.
This multi-channel approach is expected to accelerate brand penetration and sales growth across diverse customer segments.
Boosting Profitability with High-Margin Sales
Stealth’s exclusive brand strategy is designed to drive higher margins and profitability. Wholesale margins are projected to exceed 40 per cent. Retail sales margins are expected to rise by 30 to 50 per cent through company-owned operations.
“These agreements will further enhance profitability and reinforce our leadership in the industrial products distribution sector,” Arnold noted.
Competitive Advantage Through Tiered Branding
Stealth’s market strategy follows the ‘Good, Better, Best’ framework, ensuring a well-rounded product offering across different price points.
“The addition of CAT® Power Tools and Wesco Power Tools, alongside industry leaders like Milwaukee and Makita, strengthens our competitive positioning,” Arnold explained. “It enhances product differentiation and caters to a broader range of customer needs.”
Positioned for Long-Term Growth
Stealth remains committed to executing its exclusive brand, own-brand, and private-label strategy to achieve its ambitious FY28 revenue target. With the addition of these globally recognised brands, the company is well-positioned to capture a larger share of the power and hand tool market while delivering strong returns for investors.
“We are building a business that delivers sustained growth and value creation,” Arnold concluded. “These agreements mark a significant step toward our long-term vision.”
With Stealth now the exclusive distributor of CAT® Power Tools, Wesco Power Tools, and Harden Hand Tools in Australia and New Zealand, the company is poised for substantial expansion in the years ahead.
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Shraddha13
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